Brazil’s third largest airline Azul and Correios (Brazil’s postal service) have had their plans to create a private integrated logistics company approved by the Brazilian antitrust authority.
The carrier had signed a memorandum of understanding in December last year with Correio to develop a company to transport cargo as part of a joint venture. It will offer integrated logistics services for cargo transportation, willing to become the best logistics platform for e-commerce in the country.
Azul said in a statement that the Administrative Council for Economic Defense (CADE) “made available in its website the report from the General Superintendence which approves, without restriction, the creation of a private integrated logistics solutions company”.
The airline added that the proceeding is still subject to a possible third party appeal or request for review by CADE’s Tribunal, which can be made within 15 days as from such publication, pursuant to the applicable law.
Azul will have a controlling 50.01 percent ownership stake in the company with Correios the remaining 49.99 per cent and it expects the joint venture will handle 100,000 tonnes of cargo a year.
Azul chief executive officer, John Rodgerson said in December last year it was a “great opportunity” to expand its cargo transportation and to “increase operating efficiency”.
The president of Correios, Guilherme Campos, previously told Reuters that the venture could cut the cost of postal transport by between 35 and 40 per cent from 560 million reais a year ($170 million) at present.